The Brink's Company Q3 FY2025 earnings call

• Brink achieved mid-single-digit organic revenue growth, with AMS/DRS showing acceleration.
• Record Q3 EBITDA and operating profit margins driven by productivity, AMS/DRS revenue mix, and pricing discipline.
• Cash generation improved, with free cash flow up 30% year-over-year.
• Year-to-date organic growth 5%, AMS/DRS at 27% of revenue.
• Progress in AMS/DRS penetration, with unvended retail and ATM outsourcing as large market opportunities.
• Margin improvement in North America via AMS/DRS mix, pricing discipline, and operational execution, with targeted 20% EBITDA margins in the midterm.

Brink delivered 5% total company organic revenue growth. AMS/DRS had 19% organic growth, accelerating from Q2's 16%, and now accounts for 27% of total revenue (trailing 12-month basis). CVM organic growth includes conversions to AMS/DRS. Third quarter EBITDA margins were 19%, up 180 basis points year-over-year, with 320 basis points expansion in North America. Cash generation improved with $175 million free cash flow in Q3, a 30% year-over-year increase.

• Q4 revenue expected ~$1.355 billion at midpoint, with mid-single-digit organic growth and 1-2 point FX tailwind.
• Adjusted EBITDA projected $267M-$287M, EPS $2.28-$2.68.
• Full year organic growth mid-single digits, AMS/DRS mid to high teens.
• EBITDA margins to expand 30-50 basis points, free cash flow conversion 40%-45%.
• Plan to return over 50% of free cash flow to shareholders through share repurchases and dividends.

• FX fluctuations can impact revenue and EBITDA due to geographic mix.
• Volatility in Rest of the World segment, particularly BGS, may affect growth.
• Bank consolidation could lead to short-term footprint changes in traditional CVM business.

Q: George Tong of Goldman Sachs asked about increasing full year growth outlook for AMS/DRS and client traction.

A: Mark Eubanks discussed client traction in AMS and DRS, including conversions from CIT, growth in regions like Latin America, and healthy pipelines.

Q: Timothy Mulrooney of William Blair asked about internal drivers for AMS/DRS growth and North America margins.

A: Mark Eubanks talked about incentive comp changes, channel partnerships, and incremental margins of 20%-30% in North America.

Q: Tobey Sommer of Truist asked about cash conversion, geographic growth, and bank consolidation.

A: Kurt McMaken and Mark Eubanks discussed free cash flow conversion drivers, balanced geographic growth, and opportunities from bank consolidation for AMS.